Saudi Arabia's Savola Group said on Saturday it bought Turkish edible oils firm Yudum Food from National Bank of Kuwait's investment banking unit for 200 million riyals ($53.3 million). Yudum will be owned by edible oil firm Afia International, which is wholly owned by Savola, the Gulf's largest food company by market value.
In 2006, Yudum generated sales of 370 million riyals and a net profit of 25 million riyals, Savola said. The Turkish firm operates two plants producing about 120,000 tonnes of sunflower, olive and maize oils for the local market, NBK said in June.
Yudum holds a 25 percent domestic market share in sunflower and corn oil, said Swicorp, which acted as financial adviser for Savola. "The Turkish edible oil market is one the largest in the Central Asia region and Europe; one million metric tonnes of edible oil is consumed annually in Turkey," Swicorp said in a statement.
Sami Baroum, Savola's chief executive, said Afia's presence in the Turkish market will strengthen Savola's current operational portfolio and its future expansion prospects in the Middle East and North Africa and in Central Asia.
"This ... (transaction) is the first step of the (Savola) Group presence and expansion in the Turkish market and it will enhance the leading role of Savola in the food sector," Baroum said. Savola has earmarked 18 billion riyals for expansion in North Africa and Central Asia, Baroum said in June, citing Turkey among his target countries.